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Austin Mortgage Update – Week Ending 1/8/10
January 10, 2010 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Slightly Lower
This Week: 5.09%
Last Week: 5.14%
1yr Ago: 5.01%
15-yr Fixed – Slightly Lower
This Week: 4.50%
Last Week: 4.54%
1yr Ago: 4.62%
Jumbo Fixed (Average 30-yr Fixed)
This Week: 5.875%
Last Week: 5.895%
Highlight of This Week’s Major Economic Reports
The first economic news of the year gave us the final significant results of 2009 – the December employment report. We all had hoped the end of the year would see no job losses, which would boost our spirits about an end to the “employment slump,” but it appears the job market remains in a still-fragile – but improving – state. The latest report from the Commerce Department showed that 85,000 more jobs were lost than were created last month. Although this figure was higher than the 8,000 loss economists were predicting, it still represents the lowest job loss rate we’ve seen in many, many months. Furthermore, it reinforces the belief/expectation that we’ll be seeing positive job growth before too long.
What to Look for Next Week
Inflation will take center stage, as well as the latest Fed survey of regional economic conditions. No major surprises expected, so mortgage rates should hold steady.
Short-Term Rate Outlook
Relatively Unchanged
Rate Updates courtesy of:
Marie Funston – Senior Mortgage Advisor with PHH Mortgage
(512) 750-7270
With rates at historic lows & the extended tax credit……now is a great time to buy! For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.
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Austin Mortgage Update – Week Ending 1/1/10
January 3, 2010 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Higher
This Week: 5.14%
Last Week: 5.05%
1yr Ago: 5.10%
15-yr Fixed – Higher
This Week: 4.54%
Last Week: 4.45%
1yr Ago: 4.83%
Jumbo Fixed (Average 30-yr Fixed)
This Week: 5.895%
Last Week: 5.875%
Highlight of This Week’s Major Economic Reports
2009 came to an end with mortgage rates on the rise, but to keep things in perspective – rates are comparable to where they were in late October, and much lower than this past summer’s peak.
One of the main factors that contributed to the uptick in rates was the Fed winding down its purchase of Treasuries, which allowed the natural laws of supply-and-demand to take a hold on the market. Prices of bonds went up as a result, which causes yields (rates) to go up.
Nevertheless, as Freddie Mac, puts it: “Although long-term mortgage rates rose for the fourth week in a row, they still remain affordable by historical standards. Based on today’s median loan amount of $138,000, monthly principal and interest payments for a 30-year fixed-rate mortgage are close to one-third less than a decade ago when rates peaked at 8.6 percent in May 2000. This translates into almost 50% less in interest payments over the full 30-year term.”
What to Look for This Week
Nothing like the state of the job market to grab everyone’s attention, and we get to find out how the last month of last decade fared with the release of the December employment report. Economists expect the smallest drop in payrolls since the recession began two years ago, which – if true – we hope will signify that we’re nearing the end of this “employment slump.”
Short-Term Rate Outlook
Potentially Slightly Higher
Rate Updates courtesy of:
Marie Funston
Senior Mortgage Advisor with Coldwell Banker Mortgage
(512) 750-7270
With rates at historic lows & the extended tax credit……now is a great time to buy! For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.
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Austin Mortgage Update – Week Ending 11/27/09
November 29, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Lower
This Week: 4.78% (lowest since April 30, 2009) – WOW!!!
Last Week: 4.83%
1yr Ago: 5.97%
15-yr Fixed – Slightly Lower
This Week: 4.29% (record low)
Last Week: 4.32%
1yr Ago: 5.74%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.75%
Previous Week: 5.75%
Highlight of This Week’s Major Economic Reports
Despite the nation’s economic challenges, there’s a lot to be thankful for this year. For one, the housing market has started to see stabilization – thanks in combination to historic low interest rates and increasing affordability. Then, there’s the first-time buyer tax credit, which was set to expire on December 1st and has since been extended to April 30th. The original expiration helped to prop up home sales in October, which saw the fastest sales pace since October 2007, with existing home sales jumping over 10% and new home sales spiking 6.2% from September’s figures.
What to Look for Next Week
The latest unemployment picture will be framed with the release of November’s employment report. Even though unemployment claims have slowly dropped in recent weeks, it’s expected we’ll see a rise in the 10% unemployment rate through the end of the year.
Short-Term Rate Outlook
Relatively Unchanged
Rate Updates courtesy of:
Marie Funston
Senior Mortgage Advisor with Coldwell Banker Mortgage
(512) 750-7270
With rates at historic lows & the extended tax credit……now is a great time to buy! For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.
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Austin Mortgage Update – Week Ending 8/21/09
August 23, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Lower
This Week: 5.12%
Last Week: 5.29%
1yr Ago: 6.47%
15-yr Fixed – Lower
This Week: 4.56%
Last Week: 4.68%
1yr Ago: 6.00%
Highlight of Last Week’s Major Economic Reports
Our rollercoaster ride for mortgage rates continues, as rates fell to three-month lows this past week. According to Freddie Mac,”U.S. Treasury bond yields fell nearly a quarter of a percentage point over the week, and other long-term yields followed suit. Interest rates on 30-year and 15-year fixed-rate mortgages fell to the lowest level since the end of May, while initial rates on 5/1 hybrid ARMs declined to levels not seen since January 2005.”
With the economy not getting worse – but still not close enough to getting better – and inflation being an “out of sight, out of mind” factor, mortgage rates will likely continue to seesaw their way through the Fall season. Beware, however, that the pressure is more on rates to go up, as the economy continues to rebound, and the Fed weaning itself off buying significant amounts of Treasury securities.
And, as the clock ticks for historic-low mortgage rates, buyers (led by first-time buyers) are dashing to take advantage. New Home Sales in July, for instance, rose a whopping 7%, putting the annualized rate 250K above economists’ forecasts. “Low mortgage rates are helping to reinforce the housing market. New construction on one-family homes rose for the fifth consecutive month in July to an annualized pace of almost 500,000 homes, the most since October 2008. In addition, homebuilder views of housing market conditions for the remainder of the year rose for the second month in a row in August to the most positive reading since June 2008, according to the National Association of Home Builders” (Freddie Mac).
What to Look for This Week
The economic calendar will be abuzz next week with a slew of data coming up, but New Home Sales data and the revised 2nd quarter GDP will likely be the big mover-and-shaker for rates.
Short-Term Rate Outlook
Stable to Potentially Higher
Rate Updates courtesy of:
Marie Funston
Senior Mortgage Advisor with Coldwell Banker Mortgage
(512) 750-7270
For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.
~ Kevin
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Austin Mortgage Update – Week Ending 8/7/09
August 9, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Slightly Lower
This Week: 5.22%
Last Week: 5.25%
1yr Ago: 6.52%
15-yr Fixed – Slightly Lower
This Week: 4.63%
Last Week: 4.69%
1yr Ago: 6.10%
Highlight of ThisWeek’s Major Economic Reports
Is it safe to say that the recession (or at least the worst of it) is behind us? Recent reports for construction spending, manufacturing, and factory orders revealed improvements in these sectors that would help to support this notion. The biggest boost, however, came from the latest employment report, which showed a hugely surprising job loss figure of only 247K (the smallest number of job losses in a year). Even though we’re still in the negative territory on jobs, the mere reduction in job losses was hailed as a plus for the economy’s road to recovery.
What to Look for This Week
Not much on the economic calendar, so expect the euphoria of last week’s employment report to help prolong the stock market rally, which does not bode well for mortgage rates.
Short-Term Rate Outlook
Potentially Higher
Rate Updates courtesy of:
Marie Funston
Senior Mortgage Advisor with Coldwell Banker Mortgage
(512) 750-7270
For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.
~ Kevin
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Austin Mortgage Update – Week Ending 5/1/2009
May 4, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Slightly Lower
This Week: 4.78% (record lows!)
Last Week: 4.80%
1yr Ago: 6.06%
15-yr Fixed – Unchanged
This Week: 4.48%
Last Week: 4.48%
1yr Ago: 5.59%
Highlight of Last Week’s Major Economic Reports
The economy continues to show signs of stability. A recovery isn’t here yet, but it’s at least starting to look like it’s within reach.
In a recent USA Today article, “The Federal Reserve … confirmed that the nerve-wracking economic free fall of recent months slowed in the past month. But the economy continues to shrink and will remain “weak” for some time, the nation’s central bank said. The policymaking Federal Open Market Committee voted to leave its benchmark interest rate unchanged at near zero and reiterated plans to buy up to $1.75 trillion in government securities in a bid to ease tight credit markets. Its decision to stand pat followed an extended blizzard of crisis-fighting steps.”
Furthermore, according to Freddie Mac, “The housing market may be edging towards a bottom. Existing home sales stayed near its four-month average in March while new home sales were stronger than the market consensus. More importantly, the inventory of unsold new homes fell to the lowest number since January 2002. And, the S&P/Case-Shiller® 20-city composite index did not show a record year-over-year decline in February for the first time since December 2006. Finally, housing affordability hit record highs in the first quarter of this year, according to figures from the National Association of Realtors, which date back to January 1971.”
With growing talk of economic stabilization, consumer confidence seems to be picking up a bit in recent times. This, despite the growing unemployment rate and the declining incomes, which has caused the nation’s savings rate to rise drastically over the past few months.
What to Look for This Week
Fed Chairman will be providing his latest sentiments on economic conditions, and the latest reading on the labor markets will be released.
Short-Term Rate Outlook
Stable to Potentially Higher
Stay Informed: What’s in the News
“Finding Bottom: Where the Market Will Turn Around” from Ris Media
The end is near. When exactly, is hard to predict. It is also hard to predict what that end will look like. However, it is hard to escape the sense that some things will change forever. But what? Will law and order, if you can call this that, descend into chaos? Will nations withdraw from the global economy and seek self-sufficiency and protectionism? Will complex monetary systems that allow insider manipulation be replaced by barter? Will Brad and Angelina ever tie the knot? These are the great questions of our time.
For more information about the Austin Market, please contact me directly:
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Austin Mortgage Update – Week Ending 4/17/2009
April 19, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Slightly Lower
Last Week: 4.82%
Previous Week: 4.87%
1yr Ago: 5.88%
15-yr Fixed – Slightly Lower
Last Week: 4.48%
Previous Week: 4.54%
1yr Ago: 5.40%
Highlight of Last Week’s Major Economic Reports
Mixed signals continue to dominate the economic headlines, but overall the outlook continues to improve.
The Fed, for instance, noted “stabilizing” or “moderating” conditions in most regions, while weekly unemployment claims improved to a not-as-bad 610,000 last week.
The stock market has also been gaining steam, which is helping to bolster consumer confidence.
Prices are still falling. The Producer Price Index dropped 1.2% last month and is down 3.6% from last year. Before panic over deflation kicks in, however, do note that the Consumer Price Index fell by only 0.1% and is holding steady for the year.
What to Look for This Week
Home Sales figures will be the only major headliners, so expect more stock market activity to drive mortgage rates.
Short-Term Rate Outlook
Stable
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Austin Mortgage Update – Week Ending 4/3/09
April 6, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed – Slightly Lower
This Week: 4.78% (record low rate since 1971)
Last Week: 4.85%
1yr Ago: 5.88%
15-yr Fixed – Slightly Lower
This Week: 4.52% (record low rate since 1991)
Last Week: 4.58%
1yr Ago: 5.42%
Highlight of Last Week’s Major Economic Reports
The stock market showed off a nice rally this week, finishing 440 points higher than where it started last Monday. This was thanks in large part to the Financial Accounting Standards Board’s decision to relax its standards so that financial companies can change the way it values its assets. The move is intended to unfreeze the credit markets, since it will make it easier for banks and other financial institutions to raise capital.
Meanwhile, the labor market continues to be bleak, as March posted an expected 663,000 in jobs lost, while the unemployment rate hit 8.5% — the highest since 1983. The silver lining here is that the numbers at least aren’t getting worse.
What to Look for This Week
The stock market will continue to be the key driver of mortgage-rate activity, since there are no major economic data coming up.
Short-Term Rate Outlook
Stable to Potentially Higher
Stay Informed: What’s in the News
“Texas Counties on the Grow” from Austin Business Journal
An analysis of the most recent U.S. Census report found that ten Texas counties were among the top 25 fastest-growing counties in the country between July 2007 and July 2008.
That put Texas ahead of every other state, including California, which had six counties in the top 25, and Arizona and North Carolina, which had two counties each.
The analysis was conducted by the Capital Area Council of Governments.
Texas counties that made the top 25 were Harris (No. 2), Tarrant (5), Bexar (10), Collin (12), Dallas (13), Travis (14), Fort Bend (18), Denton (21), Williamson (23) and Hidalgo (24).
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Austin Mortgage Update – Week Ending 3/27/09
March 30, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** based on week’s average with 1pt **
30-yr Fixed – Slightly Lower
This Week: 4.76%
Last Week: 4.77%
1yr Ago: 5.85%
15-yr Fixed – Slightly Lower
This Week: 4.53%
Last Week: 4.57%
1yr Ago: 5.34%
Highlight of This Week’s Major Economic Reports
Surprising news popped up in the housing market as existing home sales jumped an astounding 5.1% in February, while new home sales also beat market expectations with a 4.7% increase. This is the first big jump in home sales in a few months, and it’s another encouraging sign that we may be nearing the bottom.
However, the bigger headline-nabber for the week came out of the Treasury Department with the announcement of the highly anticipated “toxic asset” plan, which is aimed at alleviating banks’ balance sheets by using up to $1 trillion in taxpayer and private investor funds to buy up such assets as subprime mortgages. Whether the plan will work to increase the flow of lending again still remains in question, but this at least gives the government a strong weapon in tackling the ongoing financial crisis.
What to Look for Next Week
Very closely watched will be Friday’s employment report, which is expected to create another uptick in the nation’s unemployment rate.
Short-Term Rate Outlook
Stable
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Austin Mortgage Update – Week Ending 3/20/09
March 23, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** based on week’s average with 1pt **
30-yr Fixed – Lower
This Week: 4.77%
Last Week: 5.03%
1yr Ago: 5.87%
15-yr Fixed – Lower
This Week: 4.47%
Last Week: 4.64%
1yr Ago: 5.27%
Highlight of This Week’s Major Economic Reports
My mortgage lenders have been proclaiming that the only thing that would cause rates to come down drastically again is if the Fed announced that it would buy up even more mortgage-backed securities; and, sure enough, that’s exactly what they did. With a renewed commitment of $750 billion to buy up Fannie Mae and Freddie Mac – and even FHA-originated – loans, mortgage rates tumbled this week, as the Fed all but guaranteed to buy these debts (regardless of market conditions). Mortgage rates fell to an average of 4.5% on Thursday, but it’s expected they’ll settle into 4.75-5.25% territory for the foreseeable future.
The Fed is willing (and able) to keep dishing out billions of dollars into the financial markets, since inflationary concerns remain relatively tamed. The Producer Price Index posted only a modest gain of 0.1% in February, while the Consumer Price Index nudged higher by 0.4%.
From an economic standpoint, despite a lack of “warm and fuzzy” news to help us feel more confident about an economic recovery later this year, we do continue to see signs of stability across the spectrum. Housing Starts, for example, was up 22% over last month, which was the first noticeable increase in recent history. Manufacturing, consumer confidence, and weekly unemployment claims are all still in negative territory, but at least the numbers have curtailed somewhat recently, which at least gives us hope for a bottoming out.
What to Look for Next Week
February’s home sales data will be the main headliners for the week but will likely have little influence on the direction of mortgage rates.
Short-Term Rate Outlook
Stable
Stay Informed: What’s in the News
“Under 5%, Mortgages May Be Near the Bottom” from The Wall Street Journal
The Federal Reserve is going to extraordinary lengths to push down long-term interest rates, including home-mortgage rates. But those hoping mortgage rates will fall sharply from current levels, already historically low, may be disappointed.
Mortgage firms Thursday were quoting rates averaging 4.75% on 30-year fixed-rate mortgages, according to Zillow.com, a real-estate information service. That is down from more than 5% two days ago and about 6% in mid-November. But further big declines will be hard to achieve, partly because the mortgage-lending market has grown less competitive in the past year as hundreds of small banks and independent mortgage lenders have collapsed. The big banks that dominate the market are eager to boost their profits margins, not give deeper bargains to consumers.
“Austin #2 Healthiest Housing Market for 2009” from BuilderOnline.com
Nine years ago, during the tech bust, some builders felt that Austin was too crowded and left. The bloom is back on Austin’s yellow rose now; it moved up the leader board to become the sixth largest home building market last year. Job creation explains the move. While other markets lost employment, Austin added 17,400 jobs last year, 2.3 percent growth rate. It helps that Austin is home to both a major university, The University of Texas, and the state capital. Existing homes cost a little bit more in Austin than other Texas markets, roughly $188,600, but that’s still below the national average. Also, Austin is one of the few metro areas in the country where median prices actually rose in 2008–2.7 percent. Amazingly, Austin now generates more home building activity than Chicago, which has six times more people.
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Austin Mortgage Update – Week Ending 3/13/09
March 15, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac survey **
30-yr Fixed – Lower
This Week: 5.03%
Last Week: 5.15%
1yr Ago: 6.13%
15-yr Fixed – Lower
This Week: 4.64%
Last Week: 4.72%
1yr Ago: 5.60%
5/1 ARM – Lower
This Week: 4.99%
Last Week: 5.08%
1yr Ago: 5.58%
Highlight of This Week’s Major Economic Reports
The stock market actually managed to pull off a rally this week, thanks in large part to surprising news of profitability from the country’s largest banks. We are hopeful the Fed’s efforts for making money cheaply available to banks is finally making a positive impact on banks’ balance sheets, which in turn is helping to stimulate lending.
Moreover, despite the continued barrage of weak economic data, there is a lot of comfort we can take in that the numbers seem to be less severe of late. Retail Sales, for instance, fell only 0.1% in February. Not bad given the dire state of the automotive industry. Also, weekly unemployment claims – despite remaining at high levels – are at least starting to show some signs of leveling off, since the numbers haven’t worsened in recent weeks.
What to Look for Next Week
It’s time for the Fed’s monthly meeting to discuss monetary policy, and it’s widely expected that there will be no change in short-term rates. We’ll also get another peak at the latest inflation gauges via the Consumer and Producer Price Indexes.
Short-Term Rate Outlook
Stable
Stay Informed: What’s in the News
“Texas Foreclosures Down” from the Associated Press
Texas’ foreclosure filings last month dropped 14.1 percent from a year earlier but increased 7.9 percent from January, according to the latest report from RealtyTrac, a foreclosure-listing firm.
Those numbers compared favorably to the nation’s. RealtyTrack reported that, nationally, nearly 291,000 homes received at least one foreclosure-related notice last month. That is up 30 percent from February 2008 and 6 percent from January.
The news varied throughout the state. For example, Brazos County experienced a slight uptick in foreclosures.
RealtyTrac listed a total of 58 bank-owned properties in the county since late 2006. Of those, 17 were entered over the months of January and February, compared with two properties entered from the same period of 2008.
Meanwhile, farther east, the Jefferson County clerk’s office records show that banks filed 67 notices in January, 97 notices in February and 28 so far in March. That compares with 141, 91 and 66 notices in those respective months last year.
Dr. Jim Gaines, research economist at the Real Estate Center at Texas A&M University, said he believes more people in the area will face foreclosure in the coming months. In Beaumont, some areas may see higher rates than others, and those areas may be subdivisions where creative financing was used to get people into homes that they maybe could not afford.
“HUD May Pull Restrictions on Builders’ Incentives” from Inman News
Federal regulators propose to withdraw a RESPA rule change that would bar homebuilders from offering consumers incentives that require them to use the builders’ affiliated mortgage and title insurance companies. It’s unclear whether the change — which the National Association of Home Builders has gone to court to block — will actually be scrapped, and if so, whether regulators will go back to the drawing board and launch a public process to rewrite it. About all that’s certain is that the Department of Housing and Urban Development is now promising that restrictions on homebuilder incentives originally slated to take effect in January won’t be implemented until mid-summer — if ever.
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Austin Mortgage Update – Week Ending 3/9/09
March 9, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac survey **
30-yr Fixed – Slightly Higher
This Week: 5.15%
Last Week: 5.07%
1yr Ago: 6.03%
15-yr Fixed – Slightly Higher
This Week: 4.72%
Last Week: 4.68%
1yr Ago: 5.47%
5/1 ARM – Slightly Higher
This Week: 5.08%
Last Week: 5.06%
1yr Ago: 5.34%
Highlight of This Week’s Major Economic Reports
Amidst the barrage of negative economic reports, the DOW tumbled below 7000 for the first time in almost 12 years. The beating was further exacerbated with news that the labor market lost another 651,000 jobs last month, putting the unemployment rate at a whopping 8.1% — the highest we’ve seen in over two decades.
Somewhere behind these headlines, there can be optimism, however, as there are signs of economic stabilization that continue to surface. Consumer borrowing, for instance, was up for the first time since September. Announced layoffs – while still elevated – were less than expected. Construction spending and auto sales remain on the decline, but at the least the drops have been less severe in recent months.
The Obama Administration also announced its much anticipated “Making Home Affordable” program, which we hope will create a firmer ground to help our economic recovery, as more and more homeowners struggle to keep up with their mortgage payments. The program is aimed at helping as many as nine million homeowners who either cannot refinance because their homes have lost value or who are at risk of foreclosure because their monthly payments have become unaffordable. While controversial, this program is intended to help stave off the fast-rising foreclosure rates affecting many parts of the country.
What to Look for This Week
The economic calendar will be relatively void of any major headliners, so expect for rates to be directed by the goings on in the stock market.
Short-Term Rate Outlook
Possibly Lower
Stay Informed: What’s in the News
Housing Rescue Program Details from RISMedia
President Obama earlier this week unveiled details of his home loan aid plan designed to help millions of Americans who are at risk of losing their homes.
Administration officials say the Homeowner Affordability and Stability Plan could help nearly nine million households restructure or refinance their mortgages to avoid foreclosure.
The plan includes a $75 billion homeowner stability initiative that targets at-risk homeowners, many of whom have adjustable-rate mortgages that have increased house payments to as much as 50 percent of their monthly incomes.
This initiative offers cash incentives to lenders and borrowers for working out loan modification agreements that result in lower monthly mortgage payments and allow homeowners to keep their homes. Any bank that receives federal money under the Treasury Department’s $700 billion financial rescue program will be required to take part.
Another component of the plan is intended to help as many as five million responsible homeowners who took out conforming loans owned or guaranteed by Fannie Mae or Freddie Mac to refinance through those institutions.
To finance that effort, the Treasury is providing the two companies with up to $200 billion in capital on top of $200 billion that it had already pledged to them.
“This is not going to save every person’s home,” said White House spokesman Robert Gibbs. “The plan is not intended to . . . augment somebody’s loan for a house that they couldn’t afford under any economic situation, good or bad.”
According to the latest data from the Mortgage Bankers Association, nearly 12 percent of homeowners — a record 5.4 million — were at least one month late or in foreclosure at the end of last year.
“Freddie Unveils REO Rental Initiative” from American Banker
Freddie Mac said Thursday that it has launched a program called REO Rental Initiative that gives qualified tenants and former owners the option to lease their recently foreclosed properties on a month-to-month basis. Fannie Mae had announced a similar program in December. Freddie’s program will be managed by HomeSteps, its national real estate unit, and implemented through several national property management firms.
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Austin Mortgage Update – Week Ending 2/27/09
March 2, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac survey **
30-yr Fixed – Slightly Higher
This Week: 5.07%
Last Week: 5.04%
1yr Ago: 6.24%
15-yr Fixed – Unchanged
This Week: 4.68%
Last Week: 4.68%
1yr Ago: 5.72%
5/1 ARM – Slightly Higher
This Week: 5.06%
Last Week: 5.04%
1yr Ago: 5.43%
Highlight of This Week’s Major Economic Reports
With many of the able buyers still waiting in anticipation for the government to slash mortgage rates to 4.5% — or, gasp, maybe even to 4% — it’s not much of a surprise that sales of new and existing homes continue to tumble. January saw Existing Home Sales fall 5.3%, while New Home Sales dropped 10%. The good news, however, is that inventory levels are continuing to drop; and prices, while still declining, are overall holding firm as the market tries to find a balance between supply and demand.
What to Look for Next Week
February’s employment report will be the headliner for the week, and the numbers aren’t expected to be pretty. Weekly unemployment claims have averaged 600K over the past few weeks, so it’s anticipated that the nation’s unemployment rate will rise again. The silver lining to this dreary projection is that it may help mortgage rates improve or at least hold steady.
Short-Term Rate Outlook
Stable
Stay Informed: What’s in the News
“Texas Home Prices Up” from the Texas A&M Real Estate Center
Latest home appreciation rates released this week by the Federal Housing Finance Agency (FHFA) indicate Texas home prices increased 2.1 percent last year.
Midland led the way with a 10.4 percent increase between fourth quarter 2007 and fourth quarter 2008. At the other end of the spectrum were Odessa and Brownsville, where prices fell 2.7 percent and 2.6 percent, respectively.
In the final quarter of 2008, Texas home prices increased 0.2 percent.
“The data indicate what we have believed all along,” said Real Estate Center Research Economist Dr. Jim Gaines. “Texas fared well in 2008, especially compared with the rest of the country.”
According to FHFA, here’s how home prices in select Texas cities did last year:
Austin–Round Rock – up 4.4%
College Station–Bryan – up 5.5%
Dallas-Plano-Irving – up 1.9%
Houston–Sugar Land–Baytown – up 3.7%
Killeen–Temple–Fort Hood – up 2.5%
San Antonio – down 1.6%
Waco – down 1.7%
Nationally, prices dropped 4.5 percent last year for the overall index (which includes financings and refinancing) and 8.2 percent based on purchases-only data.
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Austin Mortgage Update – Week Ending 2/20/09
February 22, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Lower
This Week: 5.04%
Last Week: 5.16%
1yr Ago: 6.04%
15-yr Fixed – Lower
This Week: 4.68%
Last Week: 4.81%
1yr Ago: 5.64%
5/1 ARM – Lower
This Week: 5.04%
Last Week: 5.23%
1yr Ago: 5.37%
Highlight of This Week’s Major Economic Reports
Headlines were dominated by the new stimulus bill and the newly-announced housing rescue plan, neither of which was positively received by the stock market and helped mortgage rates ease a bit.
In addition to first-time homebuyer tax credits presented in the stimulus bill, President Obama unveiled a plan to help stabilize the housing market by enabling the refinance of Fannie Mae and Freddie Mac owned mortgages into lower-cost loans. This new initiative is aimed at helping up to nine million homeowners who either (1) owe more than their homes are worth or (2) are struggling to afford their monthly mortgage payments. As controversial as these plans are, we’ll just have to see if they are effective in resolving the foreclosure epidemic plaguing our country.
On the economic front, so much for talks of deflation … at least for now. January showed a reversal of trends in prices as the Producer Price Index rose a surprising 0.8%, while the Consumer Price Index ticked up 0.3%. No need to worry about a resurgence in inflation just yet; however, we’ll need to keep an eye on these reports in the coming months, since inflation will mean bad news for mortgage rates.
What to Look for Next Week
The housing market takes center stage again with the release of the latest Existing and New Home Sales figures. We’ll also get a final look at last quarter’s GDP. Fed Chairman Ben Bernanke’s latest report to Congress will surely draw attention as well, as we’ll get a better idea (we hope) of when the Fed may start buying up more securities, which would drive mortgage rates down.
Short-Term Rate Outlook
Stable
Stay Informed: What’s in the News
Builder Magazine Names Five Texas Cities Healthiest Housing Markets
Five Texas cities swept the top spots on Builder magazine’s list of “Healthiest Housing Markets for 2009.”
Houston ranked first, Austin second, Fort Worth third, San Antonio fourth and Dallas fifth.
Rounding out the top ten were Raleigh, N.C., Seattle, Indianapolis, Ind., Fayetteville, Ark., and Washington D.C.
To compile the list, Builder analyzed the top 75 housing markets in the country, ranking them based on population trends and job growth, perennial drivers of housing demand. They also looked at home prices and the number of building permits.
First American CoreLogic Finds Highest Home Appreciation in Texas
Texas continues its trend of weathering the recession better than most other states. The state’s major metros top the nation in home price appreciation over the last year.
Austin–Round Rock leads the country’s largest core-based statistical areas (CBSA) in home price appreciation with a 3.7 percent increase in 2008, according to First American CoreLogic.
Houston–Sugar Land–Baytown experienced a price appreciation of 3.3 percent over the last year, putting it right behind Austin–Round Rock.
Dallas-Plano-Irving homes appreciated 1.92 percent and San Antonio’s homes 0.17 percent, putting them third and fourth in the nation.
Overall, Texas homes saw an appreciation of 1.83 percent in 2008, putting the Lone Star State sixth among all state rankings.
Fannie, Freddie Increasing Fees
Effective April 1, Fannie Mae and Freddie Mac will increase the “delivery” fees they charge lenders based on FICO scores, down payment amounts and other loan characteristics.
Under the new guidelines, even applicants who assumed that their FICO credit scores would get them favorable rates will be charged more unless they can come up with down payments of 30 percent or more.
For example, a buyer with a 699 FICO score who brings a down payment of about 25 percent to the table will be hit with a 1.5 percent delivery fee at closing under the new guidelines. A buyer with a FICO score between 700 and 720 will pay an extra three-quarters of a point. Someone with a 739 FICO — once considered a platinum guarantee of the best rates available — will get dinged with a quarter-point add-on.
Condominium buyers who cannot come up with a 25 percent down payment will be hit with a three-quarter point add-on penalty, no matter how high their credit score.
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Stimulus Plan First-Time Homebuyer Tax Credit Update
February 17, 2009 by Kevin Wilhelm · Leave a Comment
A Special Update from MBSQuoteline
The Stimulus Plan was signed into law by President Obama today. It contains a new tax credit for first-time homebuyers. Essentially, first-time homebuyers within certain income limits who purchase a home in 2009 before December 1, 2009 will receive a tax credit of up to $8,000. The program is similar to the $7,500 tax credit which applied to home purchases made in 2008 after April 9. A comparison of the two credit programs is outlined below.
While the Stimulus Plan was still being debated, the Senate version originally included a $15,000 tax credit for all homebuyers. To lower the cost of the Stimulus Plan, the final version of the Plan contained this smaller tax credit, and this tax credit is applicable only to first-time homebuyers.
To qualify as a first-time home buyer as defined in the programs, the purchaser (and the purchaser’s spouse) may not have owned a home in the three years prior to the purchase date of the home. Single family homes qualify for the program. The home must be the primary residence.
Both tax credits are subject to the same adjusted gross income limitations (full credit for AGI less than $75,000 single/$150,000 joint, phased out for AGI up to $95,000 single/ $170,000 joint).
The amount for either credit is the lesser of 10% of the home purchase price or $7,500 or $8,000, as applicable.
While a purchaser still owns the home, the $7,500 credit must be repaid in equal payments over a period of 15 years, starting with the 2010 tax filing. The $8,000 credit will not need to be repaid. Again, the $7,500 credit needs to be repaid, while the $8,000 credit does not!
Upon sale of the home, any portion of the $7,500 credit not yet repaid is due in full. No portion of the $8,000 credit is due upon sale of the home, if the home is owned for more than three years. If the home is sold within the first three years, the full amount of the credit is due upon sale.
The $7,500 credit was not available to any purchaser utilizing state/local revenue bond money to help finance the home purchase. There is no such restriction on the $8,000 credit.
Under both the $7,500 and the $8,000 programs, the credit will be claimed on the purchaser’s income taxes. Any amount in excess of taxes owed will be refunded to the purchaser.
Additional information about the tax credit can be found on the websites of the National Association of Realtors (www.realtor.org) and the National Association of Home Builders (www.nahb.org).
Please feel free to call me with any questions.
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Austin Mortgage Update – Week Ending 2/13/09
February 13, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Slightly Lower
This Week: 5.16%
Last Week: 5.25%
1yr Ago: 5.72%
15-yr Fixed – Slightly Lower
This Week: 4.81%
Last Week: 4.92%
1yr Ago: 5.25%
5/1 ARM – Slightly Lower
This Week: 5.23%
Last Week: 5.26%
1yr Ago: 5.19%
Highlight of This Week’s Major Economic Reports
After much anticipation and ongoing debate, Congress finally passed a stimulus bill that is aimed at reviving the economy and creating 3-4 million jobs for American workers. The slimmed-down $789 billion economic recovery plan includes a $8,000 tax credit available only to first-time homebuyers who meet the income requirements, and the credit has been extended for purchases through the end of November. An exciting twist to this tax credit is the removal of the repayment feature as long as the home is not sold within three years.
And, while the stimulus plan also extended the higher loan limits for Fannie Mae and Freddie Mac, this won’t have an impact on us, since Texas is not considered a “high cost region,” thereby leaving our conforming loan limits at $417,000.
Additionally, the newly minted Treasury Secretary announced plans (with details to be laid out in the coming weeks) to utilize the remaining $350 billion TARP money to combat the foreclosure crisis and help banks remove “toxic assets” from their balance sheets. We’ll all be anxious to learn more about the specifics behind these plans, as they will undoubtedly determine the direction of mortgage rates in the near term.
Short-Term Rate Outlook
Stable
Stay Informed: What’s in the News
“Texas Tops in Job Growth” from BizJournals and Texas A&M Real Estate Center
Texas was top in job growth last year, according to a recent analysis by bizjournals.com.
Five Texas cities ranked among the top ten, with three securing the top three spots.
Houston added 57,300 jobs in 2008, giving it the best year of any U.S. market. Dallas–Fort Worth was next with 43,300 additional jobs, then San Antonio, which was up by 14,900 jobs.
Austin ranked fifth with 9,600 jobs added, and El Paso’s 5,300 additional jobs landed the city at ninth.
Bizjournals.com examines markets that have at least 250,000 nonfarm jobs and compares employment figures for the final month of the past two years. Seventy-two of the 88 markets studied suffered declines in employment in 2008.
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Austin Mortgage Update – Week Ending 2/6/09
February 9, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Higher
This Week: 5.25%
Last Week: 5.10%
1yr Ago: 5.67%
15-yr Fixed – Higher
This Week: 4.92%
Last Week: 4.80%
1yr Ago: 5.15%
5/1 ARM – Relatively Unchanged
This Week: 5.26%
Last Week: 5.27%
1yr Ago: 5.21%
Highlight of This Week’s Major Economic Reports
The hot topic of the week centered on the ongoing debate in the Senate regarding the stimulus package, which may have reached a compromise totaling $780 billion. The final vote in the Senate is expected in the next few days, and it would then go back to the House of Representatives for approval.
One key aspect of the proposed bill is a revision to the home-buyer tax credit. Currently a first-time buyer $7500 tax credit to be paid back over 15 years, the new proposal eliminates the repayment requirement, doubles the amount to $15,000, and would be available to all home-buyers.
On the labor front, the latest figures revealed that another 598,000 jobs were lost in January, sparking the biggest monthly job loss figure since 1974. The unemployment rate now sits at 7.6% — the highest since 1992.
What to Look for Next Week
With the economic calendar lacking any notable headliners, both the stock markets and bond markets will be directed by the results of – and reaction to – the stimulus package. It is expected that a final bill will be voted on by both houses of Congress before the end of the week.
Short-Term Rate Outlook
Stable to Slightly Higher
Stay Informed: What’s in the News
“Texas Economy Still Ahead of Nation’s” from Texas A&M Real Estate Center
The Texas economy is cooling but continues to create jobs. While the U.S. economy lost more than 2.8 million jobs from December 2007 to December 2008, Texas gained 154,600 jobs over the same period.
The state’s seasonally adjusted unemployment rate rose from 4.2 percent in December 2007 to 6 percent in December 2008. By comparison, the U.S. seasonally adjusted unemployment rate rose from 4.9 percent to 7.2 percent during the same period.
“Fed: Banks Still Tightening Loan Standards” from USA Today
U.S. banks were miserly with credit through mid-January, as the economy plunged and loan demand deteriorated, the Federal Reserve said Monday in a quarterly lending survey. Banks continued to impose tight conditions on borrowers, even as the Treasury Department provided about $200 billion in capital infusions under a special $700 billion financial rescue law. Treasury officials have pressed lenders to make loans to good clients to get the economy moving. The Fed has begun buying up to $500 billion in mortgage-backed securities to unfreeze lending.
“Fannie Mae and Freddie Mac prevent the extension of eviction” from Ecommerce Journal
Fannie Mae and Freddie Mac, the largest holders of U.S. mortgages, announced on Friday that they intend to extend the eviction cessation until March. They are also launching a new strategy to offer qualified owner-occupants and tenants’ leases so they can rent the properties on a month-to-month basis after foreclosure at market rates. This is the third extension of eviction suspensions. Both Fannie Mae and Freddie Mac started a program to suspend foreclosures evictions on Nov. 26. Those policies were set to expire on Jan. 9, but they were extended until Friday.
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Austin Mortgage Update – Week Ending 1/30/09
February 4, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Slightly Lower
This Week: 5.10%
Last Week: 5.12%
1yr Ago: 5.68%
15-yr Fixed – Unchanged
This Week: 4.80%
Last Week: 4.80%
1yr Ago: 5.17%
5/1 ARM – Slightly Higher
This Week: 5.27%
Last Week: 5.24%
1yr Ago: 5.32%
Highlight of This Week’s Major Economic Reports
Thanks in large part to falling prices and 50-yr-low interest rates, Existing Home Sales rebounded 6.5% in December to yield the biggest one-month increase since 2002. On the other hand, despite astounding offers for 3.99% fixed rates, New Home Sales didn’t fare as well, with inventories now at a whopping 12 months.
The state of the economy obviously hasn’t helped with home sales. GDP in the 4th quarter contracted 3.8%, which was the steepest decline in 27 years, and weekly unemployment claims continue to hover in the 500k range.
With the economy still weak and inflation in hibernation, the Fed not surprisingly kept short-term rates unchanged. They did, however, provide some assurance to the markets by proclaiming their intent to buy Treasuries and mortgage-backed securities to keep interest rates steady.
What to Look for Next Week
February will be rung in with all eyes on the latest jobs report. Not much optimism lies with these figures, so mortgage rates will be more likely driven by the stock market than these results.
Short-Term Rate Outlook
Stable to Slightly Higher
Stay Informed: What’s in the News
“Texas Attracts International Investors” from Austin Business Journal
Despite increasing global real estate turmoil, Texas remains an attractive play for foreign investors looking for opportunities in the United States, a report shows.
The Association of Foreign Investors in Real Estate ranks members’ top cities for U.S. and global investment in 2009. Houston ranked fifth, while Austin ranked 11th, tying with Las Vegas, Phoenix, Orlando, Atlanta, San Diego and San Jose, Calif.
Washington D.C. claimed the first spot.
The United States ranked first among nations in terms of opportunities for capital appreciation.
Conducted in fourth quarter 2008, the survey polled the association’s members who collectively hold about $1 trillion in real estate worldwide.
“Freddie Mac to Let Residents Rent Homes After Foreclosure” from USA Today
Freddie Mac on Friday plans to announce a first-of-a-kind plan that lets homeowners and tenants temporarily stay in homes in foreclosure by renting them back, an effort to stop many of the sudden evictions that have come along with the housing crisis. The program will let thousands of qualified former homeowners, as well as families renting from landlords, enter into a monthly lease on their homes after they have been acquired by Freddie Mac through foreclosure.
“More Foreclosures Coming” from CNNMoney.com
A large number of bank-owned homes that have yet to be listed for sale indicate that even more excess housing inventory is queuing up, and the long line waiting to hit the market is cause for concern.
RealtyTrac, the online marketer of foreclosed properties, recently discovered that it has far more foreclosed properties listed in its database, which the company compiles using courthouse records, than there are listed in the Multiple Listing Services (MLS) maintained by real estate agents.
“It’s not surprising that RealtyTrac has more listings. MLSs traditionally focus on individuals selling their own homes,” said Dr. Jim Gaines, economist at the Real Estate Center at Texas A&M University.
RealtyTrac found that MLS listings for four states contained only a third of the foreclosures RealtyTrac has in its database. One problem may be system overload. Gaines says that, historically, the foreclosure market has not predominantly used local MLSs to market repossessed homes. But because of the surge in the volume of foreclosures, the banks need to move homes quickly, so MLSs are now being leaned on more heavily.
Gaines adds that, anecdotally, real estate experts report that as much as 40 percent of overall listings on MLSs in major metro areas are foreclosures. The trouble with discerning what these findings really mean for the market, however, is that no one maintains specific foreclosure sales data. The government doesn’t keep up with it, and neither does any real estate service.
Looking for more information about the Austin Real Estate Market? If so, please do not hesitate to contact me directly.
Kevin Wilhelm, ABR GRI
Coldwell Banker United, Realtors
512-417-3915
Mortgage Update – Week Ending 1/23/09
January 23, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Higher
This Week: 5.12%
Last Week: 4.96%
1yr Ago: 5.48%
15-yr Fixed – Higher
This Week: 4.80%
Last Week: 4.65%
1yr Ago: 4.95%
5/1 ARM – Slightly Lower
This Week: 5.24%
Last Week: 5.25%
1yr Ago: 5.13%
Highlight of This Week’s Major Economic Reports
It was a holiday-shortened week filled with enthusiasm for the inauguration of a new President and the beginning of a new era, but the celebration was overshadowed by ongoing concern for the health of already-government-supported banks, most of which posted billions of dollars in losses last quarter.
Consumer confidence remains weak – as does homebuilder confidence – but mortgage rates nonetheless posted an increase, as lenders struggled to keep up with the demand for refinance mortgage applications.
What to Look for This Next Week
We’ll see the latest round of Fed meetings, which is expected to result in no change to short-term rates. The latest home sales figures will also be released, as well as a first glimpse of how the economy fared in the 4th quarter of last year.
Short-Term Rate Outlook
Stable to Slightly Higher
Stay Informed: What’s in the News
“Texas Home Prices at Least Risk” - from the Texas A&M Real Estate Center
Amidst a nation of MSAs hosting tumbling home prices, the Lone Star State’s own metropolitan areas have held tight to their home values, with only five of 26 MSAs seeing price declines in a 12-month period ending in September.
According to PMI Group’s Winter 2009 Risk Index, Dallas, Houston and San Antonio were the least likely large MSAs in the country during third quarter 2008 to experience lower home prices in the next two years. Each had a risk index of less than one.
Austin ranked as the 12th least likely metropolitan area to experience home price depreciation, with a 3.1 risk index, up from 2.3 in second quarter 2008.
Overall, Texas MSAs averaged a 2.8 percent increase in home prices between September 2007 and the same month in 2008.
Four of Texas’ MSAs claimed spots in PMI Group’s list of top ten annual house price appreciation rates. Sherman-Denison had an appreciation rate of 8.56; Victoria, 8.34; Odessa, 7.98; and College Station–Bryan, 6.71.
PMI’s U.S. Market Risk Index uses economic, housing and mortgage market factors (including home price appreciation, employment, affordability, excess housing supply, interest rates and foreclosure activity) to determine the probability of lower home prices in the future.
This update brought to you by
Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
and
Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915
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Austin Mortgage Update – Week Ending 1/16/09
January 16, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do Last Week?
** according to Freddie Mac **
30-yr Fixed – Lower
Last Week: 4.96% — lowest since 1971
Previous Week: 5.01%
1yr Ago: 5.69%
15-yr Fixed – Slightly Higher
Last Week: 4.65%
Previous Week: 4.62%
1yr Ago: 5.21%
5/1 ARM – Lower
Last Week: 5.25%
Previous Week: 5.49%
1yr Ago: 5.40%
Highlight of Last Week’s Major Economic Reports
According to Freddie Mac, “Interest rates for 30-year fixed rate mortgages fell for the 11th straight week to another record low, due in part to the slowing economy and government actions. So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on interest rates for fixed-rate mortgages. The Federal Reserve may add up to an additional $570 billion more this year, based on its November 25, 2008, announcement, to further shore up mortgage lending and keep rates low.”
On the economic news front, Retail Sales ended up being much worse than the already ‘horrible’ expectations for December. Prices are falling all around, but fortunately we’re not in deflationary territory – at least not yet. In December, producer prices dropped 1.9%, while consumers’ costs eased by 0.7%.
What to Look for This Week
The economic calendar is very light this week, so expect the stock market to drive the direction of mortgage rates. We’ve got the inauguration on tap, and that should generate some buzz with investors.
Short-Term Rate Outlook
Stable
Stay Informed: What’s in the News
“Economist Predicts Strong Texas Housing Market in 2009” from Texas A&M Real Estate Center
Despite the negative news surrounding the real estate industry, now continues to be a great time to buy a home in Texas, said Dr. Mark Dotzour, speaking before the Beaumont Board of Realtors.
Dotzour, the chief economist for the Real Estate Center at Texas A&M University, said the state’s housing market should thrive in 2009 thanks to affordable housing and steady job growth.
However, he also told the group to expect a decline in new home construction this year, partly because more new homes could inflate the market, causing existing home values to decline.
Although the latest report from California-based foreclosure listing firm RealtyTrac showed an 81 percent increase in the number of homeowners facing foreclosure last year, Dotzour said he does not expect foreclosures to become an issue in Texas.
“Our home prices have been going up,” he said, “and when your house is going up, you’d rather sell it then give it back to the bank.”
“Economy Still Better in Texas” from Texas A&M Real Estate Center
More than two million U.S. jobs were lost from November 2007 to November 2008, representing 1.5 percent of its labor force. The Texas economy fared much better during the period, gaining 222,900 jobs and increasing its labor force by 2.1 percent.
The state’s seasonally adjusted unemployment rate rose from 4.2 percent in November 2007 to 5.7 percent in November 2008. The U.S. seasonally adjusted unemployment rate rose from 4.7 percent to 6.7 percent over the same period.
Despite recent oil price decreases, the state’s mining industry continues to gain jobs. It ranked first in job creation, followed by professional and business services, leisure and hospitality, education and health services, and construction.
All Texas metros experienced positive employment growth rates from November 2007 to November 2008. McAllen-Edinburg-Mission ranked first in job creation followed by Laredo, College Station–Bryan, Longview and El Paso.
The state’s actual unemployment rate in November 2008 was 5.6 percent. Petroplexes Midland and Odessa ranked first and second in lowest unemployment rate followed by Amarillo, Lubbock, Abilene and College Station–Bryan.
This update brought to you by
Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
and
Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915
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Austin Mortgage Update – Week Ending 1/9/09
January 9, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Lower
This Week: 5.01% — lowest since 1971
Last Week: 5.10%
1yr Ago: 5.87%
15-yr Fixed – Lower
This Week: 4.62%
Last Week: 4.83%
1yr Ago: 5.43%
5/1 ARM – Lower
This Week: 5.49%
Last Week: 5.57%
1yr Ago: 5.63%
Highlight of This Week’s Major Economic Reports
Despite a recent uptick in Treasury yields, mortgage rates actually fell during the first full week of the New Year. One major catalyst driving this dip is the start of the Fed’s foray in purchasing mortgage-backed securities. The $500 billion budgeted for this shopping spree is helping to increase demand, which in turn has kept rates low.
Stocks also took a hit throughout the week as retailers and other corporations took turns issuing earnings warnings. This then led to a ‘flight to quality’ mad-rush over to the bonds markets, thereby further driving down rates.
And, lastly, there was the much-anticipated Employment Report. We knew it wasn’t going to be pretty. 524,000 jobs lost in December, which brought the final 2008 tally to 2.6 million. The unemployment rate now sits at a level we haven’t seen in 16 years – 7.2%. Despite the gloomy outlook for the job market, most economists do not anticipate the unemployment rate to hit double-digit levels, since the economy (i.e., GDP) is expected to make a comeback (albeit a modest one) in the second half of the year.
What to Look for Next Week
We’ll get to find out just how bad the worst holiday shopping season in years was when the latest Retail Sales figures come out on Wednesday. Then, of course, there are the all-important inflation gauges in the Consumer Price and Producer Price Indexes. Inflation is not expected to be an issue at all; it’s more so seeing if the numbers start to creep into deflationary territory, as many economists fear.
Short-Term Rate Outlook
Fractionally Lower
This update brought to you by
Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
and
Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915
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Austin Mortgage Update – Week Ending 1/2/09
January 2, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Lower
This Week: 5.10% — lowest since 1971
Last Week: 5.14%
1yr Ago: 6.07%
15-yr Fixed – Lower
This Week: 4.83%
Last Week: 4.91%
1yr Ago: 5.68%
5/1 ARM – Lower
This Week: 5.57%
Last Week: 5.49%
1yr Ago: 5.78%
Highlight of This Week’s Major Economic Reports
Vacations and holidays led to minimal activity – and movement – in the mortgage markets this week. But, some “promising” news to wind down 2008: the drop in consumer confidence was less severe in December, and the final week of the month saw fewer unemployment filings.
What to Look for Next Week
The first full week of 2009 kicks off with a slew of economic data, but most eyes (and the direction of mortgage rates) will focus on December’s employment report. Results that convey continued weakness in the economy should help to keep mortgage rates near low levels.
This update brought to you by
Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
and
Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915
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Austin Mortgage Update – Week Ending 12/26/08
December 26, 2008 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Lower
This Week: 5.14% — lowest since 1971
Last Week: 5.19%
1yr Ago: 6.17%
15-yr Fixed – Lower
This Week: 4.91%
Last Week: 4.92%
1yr Ago: 5.79%
5/1 ARM – Lower
This Week: 5.49%
Last Week: 5.60%
1yr Ago: 5.90%
Highlight of This Week’s Major Economic Reports
According to Freddie Mac, “Interest rates on 30-year fixed-rate mortgages eased for the eighth straight week and set another record low since Freddie Mac’s survey began in 1971. Real GDP growth fell 0.5% in the third quarter of the year, pulled down by the largest drop in consumer spending since the second quarter of 1980. The market consensus calls for an even larger decline in the last three months of the year.
The housing market, meanwhile, continues to contract nation-wide. Existing home sales in nation-wide (excluding condominiums and co-ops) fell 8.6% in November to 4.0 million houses (annualized) in November, representing the slowest pace since July 1997. Moreover, the median sales price fell 12.8% from November 2007, the largest 12-month decline since records began in January 1968, according to the National Association of Realtors®.”
What to Look for Next Week
Not much expected for the final week of 2008. Rates aren’t expected to sway much either way.
Short-Term Rate Outlook
Stable
This update brought to you by
Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
and
Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915
Hello, my name is Kevin Wilhelm, and I'm a licensed TEXAS REALTOR® with Realty Austin here in the great city of Austin, TX. Buying or Selling Real Estate in Austin is serious business, but I'm here to help keep things easy and stress-free. Please bookmark or subscribe to this site, and I'll do all I can to provide you with a great online real estate experience. I'm just a click or call away, so please contact me if I can help you in any way - 
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